Celebrity chef's devastating question about future of restaurants
The saying goes that two thirds of new restaurant s close within their first year. While that might be a slight exaggeration and the figures closer to around a third, the reality of our restaurant industry is they are being squeezed and squeezed.
Gone are the days when diners were flooding in willing to splash the cash on a three-course a la carte menu - with a couple of bottles of wine keeping their spirits high in between courses. Their biggest worry might have been perfecting their wine list or switching to Heston's innovative new triple-cooked chips.
Today, restaurateurs have to navigate through the perfect storm of squeezed margins, chronic staff shortages, and sky-high rent.
Yet, despite the formidable challenges, a new generation of culinary innovators are rising to the challenge, elevating the industry to whole new heights.
The past: Liquid lunches and late nights
Cast your mind back to the 1990s and early 2000s, especially in London. Restaurants buzzed with activity, from city workers entertaining clients over long lunches to evening revellers letting loose.
Celebrity chef Aldo Zilli, was behind several popular spots like Signor Zilli and Zilli Green, and witnessed this era first-hand with his restaurants playing host to parties with Freddy Mercury and Madonna.
Reflecting on the past, Aldo told The Mirror: "In the 80s and 90s it was different times, but I feel now the hospitality industry is very tough. People are keen to go out more and spend less.
'The long lunch is dead, finished. They're gone. People only work Tuesday to Thursday so the challenge gets bigger and bigger."
The present: Navigating a million challenges
In the wake of Brexit, the cost of living crisis, and a cultural shift post-pandemic, restaurants have had to become incredibly agile, with thousands of new challenges often blind-siding new eateries, meaning you have to adapt to survive - and quickly.
One person who knows those realities only too well is Andy Oliver, co-founder of the award-winning Thai restaurant som saa and one of London's hottest new openings Kolae.
Like many new restaurants, som saa began as a series of London pop-ups before successfully crowdfunding its way to a brick-and-mortar location in Spitalfields. Approaching its 10th anniversary, Andy admits: "We started out in a happy place of naivety... We just wanted to open a restaurant and we were really excited about the idea of maybe not knowing a huge amount of the reality.
"A restaurant is like a million habits, a million little systems. You end up learning a lot of painful lessons, but you just have to go through that process of learning."
In recent years, staffing has become a headache for many owners. The industry has long grappled with factors like long, unsociable hours, tough working conditions, and often lower-than-average wages, which post-pandemic drove many workers away.
According to UK Hospitality, there were approximately 132,000 vacancies in the industry in 2023, nearly 50% more than pre-pandemic levels. High staff turnover alone is estimated to cost the industry a staggering £21 billion.
When the som saa team looked to open a second restaurant post-COVID, they felt the full impact of this new reality.
"Reopening after Covid was difficult because it was a really tricky time for staff; a lot of people flowed out of the industry," Andy explains. "People were coming back to the labour pool either wanting to work less or on different terms, which I think has all been positive for hospitality to rework its relationship with its staff so it's in a much better place now."
While better conditions for staff are a positive development, they do impact the bottom line. As Andy puts it: "It's true overall that whatever model you run, you have to swallow a lower profit at the end of the day."
Something that Aldo echoed, stressing the importance of investing in your people: "In this industry you have to invest in people, in training – that's one of the biggest investments you can make.
'Getting into the industry you have to be prepared, if you want to become a chef it doesn't come easy but the rewards are so big."
The future: The only way is up
Despite the growing list of challenges, from rising costs to squeezed margins, there remains a passionate cohort of restaurateurs driven by their love of food and the desire to create unforgettable dining experiences.
Aldo remains optimistic: "I wouldn't be here if I didn't believe in restaurants," he added "I believe in the future of the industry, it's going to get worse before it gets better, but it will get better."
While Andy Oliver, on the back of the massive success of Kolae opening in 2023 shares the cautiously optimistic outlook.
He believes that because of the tough market, restaurants have levelled up their game to greater and greater heights - pushing what we can expect for a dining experience.
"In London there are a lot of challenges, but when you get it right, you get it really right and the people will come," he added: "If you're really good at what you do there's still a lot of demand out there, the bar is high and competitive, it can really work."
Restaurants in the UK have only been getting and better and are a fine example of some of brave people wanting to express the passion for great food,
Although the days of easy profits and flowing booze may be behind us, their drive to create great experiences for reasonable prices is what we need to keep the industry alive.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
3 hours ago
- Glasgow Times
Nobody is welcoming tariffs ‘with open arms', says Irish premier
Taoiseach Micheal Martin also said the deal offered 'overall ceilings' on tariff rates and would mean they are not 'stacked' upon another. Despite suggestions from US President Donald Trump, he said his understanding was that the 15% tariff on pharmaceutical exports also represented 'a ceiling' rate. Speaking to the media at Government Buildings in Dublin on Monday, Mr Martin said the US tariffs are 'not Brexit' and the approach for supporting businesses had to be 'strategic and not a handout'. He said what effect the new trading arrangements would have on October's budget would be decided closer to the time. US President Donald Trump is visiting Scotland (PA) 'It's important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy,' he said. 'New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,' he said. 'In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular. 'The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required. 'Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.' The EU is to have 15% tariffs imposed on most of its goods including cars, semiconductors and pharmaceuticals entering the US, with no new tariffs on US goods coming into the bloc. There will be 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals – as well as EU purchases of US energy worth 750 billion dollars (£560 billion) over three years. There is a mixed reaction to the deal across the EU, with French minister Benjamin Haddad calling the deal 'unbalanced' and Hungarian Prime Minister Viktor Orban stating that Donald Trump 'ate European Commission President Ursula) von der Leyen for breakfast'. Ireland's junior minister at the Department of Foreign Affairs, Neale Richmond, said the deal was the least worst option. 'We're not exactly celebrating this, it's not a case that this is a good thing but it's probably the least bad option based on what we were facing a couple of days ago, the prospect of a 30% tariff,' he told the BBC. Asked about mixed reactions to the deal from heads of government across Europe, Mr Martin said: 'Nobody is welcoming tariffs with open arms. 'I think we've been consistent in saying that we don't agree with tariffs, that we prefer if there weren't tariffs, but we have to deal with realities. 'I understand people criticising, but given the balance and the options here … in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that's the key issue.' He added: 'It's easy to put the chin out in life, but sometimes it's wiser to box more cautiously and to negotiate wisely and to think of the bigger picture, and I think that's what President von der Leyen and Maros Sefcovic have done on this occasion.' Asked about whether the 9.4 billion euro that the government announced last week would be spent in the budget would be cut back, Mr Martin said they would better understand the implications closer to the budget being unveiled in October. 'It's difficult at this early stage to calculate the impact of these tariffs in terms of government revenues, or indeed in terms of the prospects for 2026, so we will do further analysis of that.' He said he did not believe Irish companies would lose access to the US market as a result of the tariff rate. He added: 'This is not Brexit, and I would caution in terms of just creating funds in themselves. 'I think more importantly, we have to take decisions now that would create the opportunity or the landscape for companies to grow and to develop strongly, to become more energy efficient, in terms of research and development supports. 'It has to be a strategic approach, not a handout approach.' Responding, chief executive of business group Ibec Danny McCoy said he believed Europe had 'capitulated' to get a deal, but said if they had negotiated harder 'we could have damaged ourselves a lot more than we anticipated'. He said there would be 'hard cases' and job losses in Ireland under a 15% tariff, and was 'surprised' the government was not open to Brexit or Covid-level supports for businesses. 'It's not going to be a catastrophe, we're more resistant than that, but for some industries, going back to the point around the Brexit-type adjustment fund, you need to be sensitive there will be some areas that actually could find this devastating.' Mr Martin said it was 'vital' that the EU pushes ahead with the expansion of the European single market to reduce barriers in a number of sectors that 'are way beyond the value of the tariffs'. He said it was not clear yet what impact the tariff differential on the island of Ireland would have, as there is a 10% tariff in place in Northern Ireland. 'In terms of the north-south, again, the detail will be important here and its early days yet to be reading too much into that differential, because ours are not stacked, whereas some in the north would be, so these are complex issues that have to be worked out.'
Rhyl Journal
3 hours ago
- Rhyl Journal
Nobody is welcoming tariffs ‘with open arms', says Irish premier
Taoiseach Micheal Martin also said the deal offered 'overall ceilings' on tariff rates and would mean they are not 'stacked' upon another. Despite suggestions from US President Donald Trump, he said his understanding was that the 15% tariff on pharmaceutical exports also represented 'a ceiling' rate. Speaking to the media at Government Buildings in Dublin on Monday, Mr Martin said the US tariffs are 'not Brexit' and the approach for supporting businesses had to be 'strategic and not a handout'. He said what effect the new trading arrangements would have on October's budget would be decided closer to the time. 'It's important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy,' he said. 'New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,' he said. 'In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular. 'The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required. 'Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.' The EU is to have 15% tariffs imposed on most of its goods including cars, semiconductors and pharmaceuticals entering the US, with no new tariffs on US goods coming into the bloc. There will be 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals – as well as EU purchases of US energy worth 750 billion dollars (£560 billion) over three years. There is a mixed reaction to the deal across the EU, with French minister Benjamin Haddad calling the deal 'unbalanced' and Hungarian Prime Minister Viktor Orban stating that Donald Trump 'ate European Commission President Ursula) von der Leyen for breakfast'. Ireland's junior minister at the Department of Foreign Affairs, Neale Richmond, said the deal was the least worst option. 'We're not exactly celebrating this, it's not a case that this is a good thing but it's probably the least bad option based on what we were facing a couple of days ago, the prospect of a 30% tariff,' he told the BBC. Asked about mixed reactions to the deal from heads of government across Europe, Mr Martin said: 'Nobody is welcoming tariffs with open arms. 'I think we've been consistent in saying that we don't agree with tariffs, that we prefer if there weren't tariffs, but we have to deal with realities. 'I understand people criticising, but given the balance and the options here … in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that's the key issue.' He added: 'It's easy to put the chin out in life, but sometimes it's wiser to box more cautiously and to negotiate wisely and to think of the bigger picture, and I think that's what President von der Leyen and Maros Sefcovic have done on this occasion.' Asked about whether the 9.4 billion euro that the government announced last week would be spent in the budget would be cut back, Mr Martin said they would better understand the implications closer to the budget being unveiled in October. 'It's difficult at this early stage to calculate the impact of these tariffs in terms of government revenues, or indeed in terms of the prospects for 2026, so we will do further analysis of that.' He said he did not believe Irish companies would lose access to the US market as a result of the tariff rate. He added: 'This is not Brexit, and I would caution in terms of just creating funds in themselves. 'I think more importantly, we have to take decisions now that would create the opportunity or the landscape for companies to grow and to develop strongly, to become more energy efficient, in terms of research and development supports. 'It has to be a strategic approach, not a handout approach.' Responding, chief executive of business group Ibec Danny McCoy said he believed Europe had 'capitulated' to get a deal, but said if they had negotiated harder 'we could have damaged ourselves a lot more than we anticipated'. He said there would be 'hard cases' and job losses in Ireland under a 15% tariff, and was 'surprised' the government was not open to Brexit or Covid-level supports for businesses. 'It's not going to be a catastrophe, we're more resistant than that, but for some industries, going back to the point around the Brexit-type adjustment fund, you need to be sensitive there will be some areas that actually could find this devastating.' Mr Martin said it was 'vital' that the EU pushes ahead with the expansion of the European single market to reduce barriers in a number of sectors that 'are way beyond the value of the tariffs'. He said it was not clear yet what impact the tariff differential on the island of Ireland would have, as there is a 10% tariff in place in Northern Ireland. 'In terms of the north-south, again, the detail will be important here and its early days yet to be reading too much into that differential, because ours are not stacked, whereas some in the north would be, so these are complex issues that have to be worked out.'
North Wales Chronicle
4 hours ago
- North Wales Chronicle
Nobody is welcoming tariffs ‘with open arms', says Irish premier
Taoiseach Micheal Martin also said the deal offered 'overall ceilings' on tariff rates and would mean they are not 'stacked' upon another. Despite suggestions from US President Donald Trump, he said his understanding was that the 15% tariff on pharmaceutical exports also represented 'a ceiling' rate. Speaking to the media at Government Buildings in Dublin on Monday, Mr Martin said the US tariffs are 'not Brexit' and the approach for supporting businesses had to be 'strategic and not a handout'. He said what effect the new trading arrangements would have on October's budget would be decided closer to the time. 'It's important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy,' he said. 'New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,' he said. 'In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular. 'The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required. 'Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.' The EU is to have 15% tariffs imposed on most of its goods including cars, semiconductors and pharmaceuticals entering the US, with no new tariffs on US goods coming into the bloc. There will be 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals – as well as EU purchases of US energy worth 750 billion dollars (£560 billion) over three years. There is a mixed reaction to the deal across the EU, with French minister Benjamin Haddad calling the deal 'unbalanced' and Hungarian Prime Minister Viktor Orban stating that Donald Trump 'ate European Commission President Ursula) von der Leyen for breakfast'. Ireland's junior minister at the Department of Foreign Affairs, Neale Richmond, said the deal was the least worst option. 'We're not exactly celebrating this, it's not a case that this is a good thing but it's probably the least bad option based on what we were facing a couple of days ago, the prospect of a 30% tariff,' he told the BBC. Asked about mixed reactions to the deal from heads of government across Europe, Mr Martin said: 'Nobody is welcoming tariffs with open arms. 'I think we've been consistent in saying that we don't agree with tariffs, that we prefer if there weren't tariffs, but we have to deal with realities. 'I understand people criticising, but given the balance and the options here … in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that's the key issue.' He added: 'It's easy to put the chin out in life, but sometimes it's wiser to box more cautiously and to negotiate wisely and to think of the bigger picture, and I think that's what President von der Leyen and Maros Sefcovic have done on this occasion.' Asked about whether the 9.4 billion euro that the government announced last week would be spent in the budget would be cut back, Mr Martin said they would better understand the implications closer to the budget being unveiled in October. 'It's difficult at this early stage to calculate the impact of these tariffs in terms of government revenues, or indeed in terms of the prospects for 2026, so we will do further analysis of that.' He said he did not believe Irish companies would lose access to the US market as a result of the tariff rate. He added: 'This is not Brexit, and I would caution in terms of just creating funds in themselves. 'I think more importantly, we have to take decisions now that would create the opportunity or the landscape for companies to grow and to develop strongly, to become more energy efficient, in terms of research and development supports. 'It has to be a strategic approach, not a handout approach.' Responding, chief executive of business group Ibec Danny McCoy said he believed Europe had 'capitulated' to get a deal, but said if they had negotiated harder 'we could have damaged ourselves a lot more than we anticipated'. He said there would be 'hard cases' and job losses in Ireland under a 15% tariff, and was 'surprised' the government was not open to Brexit or Covid-level supports for businesses. 'It's not going to be a catastrophe, we're more resistant than that, but for some industries, going back to the point around the Brexit-type adjustment fund, you need to be sensitive there will be some areas that actually could find this devastating.' Mr Martin said it was 'vital' that the EU pushes ahead with the expansion of the European single market to reduce barriers in a number of sectors that 'are way beyond the value of the tariffs'. He said it was not clear yet what impact the tariff differential on the island of Ireland would have, as there is a 10% tariff in place in Northern Ireland. 'In terms of the north-south, again, the detail will be important here and its early days yet to be reading too much into that differential, because ours are not stacked, whereas some in the north would be, so these are complex issues that have to be worked out.'
